Daimler
Daimler AG is a multinational automotive organisation headquartered in Germany that released its second quarter financial results for 2017. The results displayed figures that are ahead of expectation specifically, a 10% plus margin on auto and 6% plus margin on truck. The EBIT was in line with the consensus but slightly below the competition.
CEO Dieter Zetsche said the second quarter has been excellent and the company's strategy is starting to take effect. He said that Daimler set ambitious targets that are being achieved especially in terms of profitability and unit sales.
On the whole, Daimler looks likely to benefit from the strong impetus of upcoming product launches specifically, the new release of E-class and SUV launches. Daimler aims to increase EBIT in 2017 by their new product cycle and an advance in their costs savings plan which will also have a positive impact on their free cash flow.
Saipem spA
Saipem spA is one of the global leaders in drilling services, as well as in the engineering, procurement, construction and installation of pipelines and complex projects, onshore and offshore, in the oil and gas market.
The outcome from the release of the second quarter 2017 results showed a solid operational performance, net financial debt to be in line with their expectations, additional measures to contain costs and updated guidelines for 2017.
Unfortunately, the company had to lower their annual earnings forecast after it fell into a second quarter loss due to tough market conditions. Furthermore, the market outlook remains challenging for Saipem, especially in the offshore sector. The project pipeline remains promising.
A positive outlook is that Russia's Novatek are considering to select Saipem to build offshore platforms for a liquefied natural gas facility in the Arctic.
General Motors Co
The renowned company General Motors Co, is an automotive organisation headquartered in Detroit, Michigan.
Following the release of their second quarter results 2017, it showed that the company surpassed the consensus estimate of adjusted earnings per share although revenues were lower than expected. The reason for revenues declining was due to a loss from a sale of a company in Europe and special charges tied to stop selling vehicles in India and South Africa. General Motors believes that with the latter action, it is now in the right market to capitalize on its higher return franchises and on long term growth opportunities.
The automaker’s global market share declined from last year’s quarter. The cash and cash equivalents increased as did operational cash flows. In general, General Motors still managed to outperform Wall Street’s expectations.
The outlook for the second half of 2017 includes an expected increase in adjusted earnings per share as well as a stable or improved adjusted EBIT and EBIT margin. Furthermore, revenues are expected to increase. The fate of the mentioned outlook relies on the release of the Bolt EV in the US on August 1, the introduction of 10 new and improved models by GM China and the Equinox SUV to be released in Brazil.
McDonald's
McDonalds, one of the most popular fast-food chains, was also one of the companies to release their second quarter 2017 results.
Global sales surged the most in five years exceeding the consensus forecast. According to analysts, the grading system the company introduced to its franchises has prompted more sales at stores that had been underperforming. Analysts had projected a shrink in McDonald’s revenues but financials showed that they shrunk less than what was forecasted. The company’s EPS also exceeded what was being expected by market participants.
CEO, Steve Easterbrook, said the company’s most important priority remains to increase the number of customers served as that is the measure of their turnaround. He added that McDonald’s customers have increased within 2017 as they serve hotter, better-tasting and convenient food.
The company further indicated that its focus will be on four main pillars: store renovations, menu innovation, digital ordering and delivery in order to achieve sustained growth and attract more customers.
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This article was issued by Maria Fenech, Intern at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.